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Microsoft powers up search for Chinese gaming hits in race against Sony

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It’s no surprise that Microsoft Corporation is ramping up its video game business in China. After all, Sony Corporation managed to make serious waves with their biggest release yet, “Genshin Impact”. With more and more companies looking towards this market, Microsoft’s dominance as the world’s largest game publisher will likely continue to grow.

The large U.S. software company, on one side, and the vanguard of Japanese technology, on the other, have for some years been offering big money to small developers in order to nurture programmes and licence titles. However, with the recent impact of “Genshin Impact,” sources say there is now a sense of urgency.

The action role-playing game by budding Shanghai studio, miHoYo, has generated billions of dollars since its release two years ago. It has raised the bar in multi-player, cross-platform games – the type sources said Microsoft and Sony’s subscription services are seeking in China.

Western interest in Chinese games reflects on a maturing and increasing investments in the Chinese game industry. Daniel Ahmad, senior analyst at researcher Niko Partners, said “Chinese games are now on a par with big-budget Western games.”

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“Chinese game developers are trying to standardize their development tools, create advanced production processes and invest in really large-scale teams,” Ahmad said. “This ultimately helps provide them with the competitive edge to reach a broad audience both in terms of geography and platforms.”

Microsoft has been building a team to scout for Chinese games and two industry insiders said the company mainly fills its subscription roster with big-brand titles but is now reaching out to even indie studios with sizable offers.

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